Walgreens Outlines Future for Boots in the middle of US Struggles

Walgreens reaffirms commitment to Boots with major investment plans, store revamps, and digital upgrades to bolster its UK performance.

Walgreens, the US retail giant, has confirmed its commitment to Boots, the UK pharmacy chain it owns, despite facing challenges in its own country. Recently deciding to retain Boots rather than sell it, Walgreens sees the UK retailer as a crucial part of its international strategy.

Ornella Barra, Walgreens' international head, highlighted Boots' significance, stating, “Boots is very important for Walgreens. It’s in a very good position in the market, so at the moment, the best solution is for Boots to remain part of the group.” This follows Walgreens' decision to abandon plans to sell Boots after the chain's strong performance.

The retailer has outlined a substantial investment plan for Boots, including a £527 million investment over the past three years. A new three-year investment plan, amounting to hundreds of millions of pounds, will focus on modernizing stores, with 450 larger stores already upgraded and 170 more scheduled for improvements in the coming years.

Boots is expanding its beauty offerings, adding over 500 brands and responding swiftly to trends like South Korean skincare. A new beauty-only store opened in Battersea, with plans for more in major cities.

Digital expansion is also a priority, with Boots' app users growing above one million during pre-Covid to over seven million. Boots' outgoing CEO Seb James noted significant progress in digital presence, with expectations for further advancements.

Boots is also leveraging its new Pharmacy First scheme to enhance healthcare services and is exploring partnerships for clinical trials, aiming to bolster its role in the healthcare sector.